Singapore's Q1 2026 GDP grows 6%, beating forecasts as AI chip demand offsets Iran war risks

Singapore's Ministry of Trade and Industry reported GDP growth of 6 percent year-on-year in Q1 2026, comfortably beating its own advance estimate of 4.6 percent. The ministry attributed growth to robust AI-related demand for semiconductors, which drove expansion in wholesale trade, manufacturing, and finance and insurance sectors. The government kept its 2026 annual forecast at 2–4 percent, citing downside risks from the ongoing US-Israel war on Iran, which has effectively closed the Strait of Hormuz to most shipping since February 28.